using loan performance data to inform program implementation · 5/22/2014 · using loan...
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Michigan Saves: Using Loan Performance Data to Inform Program Implementation
May 22, 2014
Mary Templeton
Executive Director
Michigan Saves
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Michigan Saves Structure and Role • Provide loss reserve
for lenders State and Federal
Governments
• Oversee authorized contractors
• Drive demand for energy efficiency through outreach and incentives
• Set program guidelines and provide quality control
Contractors Lenders
Customers
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More importantly, what do we do with the data we track?
What data do we track?
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Home Energy Loan Program to Date
Cumulative Balance Monthly Loan Volume
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
0
2011 2012 2013 2014
Losses paid: 51 (1.5%) through Feb Monitoring to perform better
than national average of 3–4%
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Tracking performance
Monthly Loan Volume
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
to goals, seasonality, performance of incentives
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Reduced minimum credit score to 640 to drive more approvals
Approval Rates Decision Count % of Total Avg Income Avg Credit Score
Approved 3,466
2,286
211
218
60.04%
33.56%
3.32%
3.08%
$76,036.29
$57,019.80
$55,411.34
$56,632.70
740
630
699
626
Denied
Pending
Recommend
Denied
Grand Total 6,181 100.00% $67,615.88 696
Loan Approvals (LSI Report) Taking a deeper look at the last 6 months:
Approved Denied % Approved
Oct 93 69 57%
Nov 77 58 57%
Dec 59 47 56%
Jan 61 61 50%
Feb 67 35 65%
Mar 76 38 66%
Reduced minimum credit score to 640 to drive more approvals
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Customer Satisfaction:
Likes
• Easy, fast process
• Contractors
• Professionalism
• Customer service
• Home Improvement/new equipment
• Saving money
“It was a really good deal. And we love our new windows—
they’re a big improvement over what we had before.”
— Steve McMullen
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Customer Satisfaction:
Needs Improvement
• Lower interest rates
• More local lenders
• More marketing
• Contractor oversight
• Contractor education “The difference was
immediately noticeable ...
the temperature is much more
even throughout the house.”
— Brian Catlett
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Leveraging Customer Feedback
• Build off of satisfied customers
• Utilizing contractor ratings in online database
• Seeking more local lenders in underserved areas
• Talking to current lenders about rates
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Average project size of non-financed jobs:
$4,365
Average project size of financed jobs:
$10,130
are 230% larger
have 29% more measures
save 37% more energy
Jobs that are financed …
… than cash jobs
Analysis of more than 2,500 jobs, 35% financed and 65% cash (889 financed and 1,655 cash).